The International Monetary Fund (IMF) predicts that Portugal ends this year with a deficit of 0.2% of GDP and 0.1% in 2024showing itself more pessimistic than the Government, was released this Wednesday.
Medina withdraws again from his candidacy for prime minister
In the “Budget Monitor” report, published this Wednesday within the framework of the spring meetings of the IMF and the World Bank, the institution led by Kristalina Georgieva revises downwards the forecast for Portugal’s budget deficit compared to 0.4% of the Gross Domestic Product (GDP). for 2023 and 0.2% for 2024, planned in June.
The IMF report still does not take into account the State Budget proposal for 2024 (OE2024), delivered by the Portuguese Government to Parliament, this Tuesday.
In this proposal, the Government foresees a Budget surplus of 0.8% this year and 0.2% in 2024. The IMF forecasts a deficit of 0.2% of GDP from 2025 to 2028.
The Bretton Woods institution is also more optimistic than in June about the public debt/GDP ratio, forecasting a reduction to 108.3% this year and 104% in 2024.
These forecasts are above what was expected by the Government, which foresees a ratio of 103% this year and 98.9% in 2024.
At the end of the projection horizon, the IMF aims for a ratio of 89.7% in 2028.
Updating the economic projections published on Tuesday, the IMF foresees growth in the Portuguese economy of 2.3% this year and 1.5% in 2024 and a reduction in the inflation rate to 5.3% in 2023 and 3.4% in 2024.
Source: Observadora
